Historic Finnish-Russian climate quota deal signed
Finnish energy company Fortum has signed a deal with Northwest Russias biggest electricity generator TGK-1, according to which it will purchase approximately 5 million tonnes of emission reduction units (ERU) from the Russian company.
The deal is the largest ever trade of CO2 emission reduction units in Russia, Fortum reports in a press release.
-This agreement clearly demonstrates that Fortum is an industrial investor committed to developing the Russian power and heat sector in a sustainable way, General Director of TGK-1, Valery Rodin, says. The ERUs will come from Joint Implementation projects conducted at TGK-1’s production facilities during the Kyoto Period (2008-2012) of the European Emissions Trading Scheme, the company reports.
The ERUs purchased cover approximately half of Fortum’s annual CO2 emissions and their value is approximately EUR 70 million based on the current market price
The Territorial Generation Company No 1 (TGK-1) operates electricity generating units in Murmansk Oblast, the Republic of Karelia, Leningrad Oblast and Sankt Petersburg. The company in 2007 produced a total of 26,63 million kWh
